(WEB HOST INDUSTRY REVIEW) — Through a private placement of debt, data center developer Digital Realty Trust (www.digitalrealtytrust.com) has raised $260 million to temporarily repay its revolving credit facility borrowings it uses to acquire additional properties, and fund development and redevelopment opportunities.
DRT announced the offer of debentures on Tuesday, according to a Data Center Knowledge report. DRT is the largest holder of data center properties, which requires large amounts of capital.
DRT originally planned to sell $200 million in debt, with the potential to raise an additional $30 million through an overallotment (an overselling of in anticipation that some orders may not be confirmed). The offering, however, raised $260 million, and has granted buyers a 30-day option to buy another $40 million to cover overallotments.
Investors in DRT’s debentures earn 5.5 percent interest, which matures in 2029. They also have the option of exchanging them for shares of DLR common stock.
